Technology Advice Business Results Giga Information Group Comparing

® Technology Advice. Business Results. Giga Information Group Comparing the Enterprise CRM Vendors Oracle, People. Soft, SAP, Clarify and Siebel Erin Kinikin John Ragsdale Vice President Director November 29, 2001 Call in at 12: 55 PM EDT © 2001 Giga Information Group, Inc. All rights reserved. Reproduction or redistribution in any form without the prior written permission of Giga Information Group is expressly prohibited.

CRM Success Is More Process Than Product • Enterprise CRM vendors all offer viable products. • Clear definition of success criteria is key. • Enterprise CRM cannot succeed without commitment and support from management. 2 © 2001 Giga Information Group, Inc.

Narrowing Functionality Gap: Different Strengths People. Soft SAP Oracle Siebel Clarify Architecture 9 6 6 8 7 Scalability 8 6 7 8 8 Breadth 6 6 7 9 6 Analytics 7 6 5 7 5 Multi-Channel 6 5 6 9 8 Internationalization 8 8 9 7 5 Vendor Viability 7 7 8 9 6 3 © 2001 Giga Information Group, Inc.

Siebel Systems: “The Market Leader” • Strengths – – Functional breadth and depth Market leader status Referenceable customers Siebel 7 shipping this quarter – – Migration issues for existing customers Concerns about ERP integration, cost of ownership Unicode compliance slipped until 7. 5 Analytics, data warehousing, business intelligence • Weaknesses 4 © 2001 Giga Information Group, Inc.

Siebel Scorecard Siebel Architecture 8 Vendor Viability Internationalization Scalability 9 8 7 9 Breadth

People. Soft: “The Well-Architected Challenger” • Strengths – – – Service and support Thin client and portal architecture Flexible integration (SOAP, XML) and data model Strongest application toolset Referenceable customers — and internet architecture scalability references – Shipped June 30 with good upgrades to Vantive functionality – Industries: Financial services (Q 4) and communications (Q 1 refresh), also government and education • Weaknesses – Migration issues for Vantive customers — tools help – Marketing, partner management, configuration – Playing catch-up on multichannel — e-mail and mobile – Strong analytics offering — but few customer references 6 © 2001 Giga Information Group, Inc.

People. Soft Scorecard People. Soft Architecture 9 Vendor Viability Scalability 8 7 Internationalization 6

Oracle 11 i: “The One-Stop E-Business Shop” • Strengths – Existing ERP customer base – Trading Community Architecture — flexible data model – Strong integration story to Oracle back office • Only ERP vendor with single integrated data model – Internationalization – Functional breadth/depth increasing in 11 i 6 – Industries: Telco • Weaknesses – – – Product instability Lack of customer references Poor user interface design BI vision incomplete for CRM Multiple tools required for customization — major transition ahead? 8 © 2001 Giga Information Group, Inc.

Oracle Scorecard Oracle Architecture Vendor Viability 8 Internationalization Scalability 6 7 7 9 Breadth

SAP: “The Product Specialist” • Strengths – – Existing ERP customer base Strong order management and fulfillment Maturing integration strategy — better in 4. 0 product Contracts and B 2 B partner functionality — even without a partner management module – Industries: manufacturing, CPG, heavy equipment • Weaknesses – – – Usability Call center performance, functionality, and usability SFA usability and scalability Marketing automation Different tools for SFA (VB), J 2 EE, and Windows Evolution into new architecture in 2003 and beyond 10 © 2001 Giga Information Group, Inc.

SAP Scorecard SAP Architecture Vendor Viability Scalability 6 7 Internationalization 6 6 8 5

Clarify/Amdocs: “The Communications Specialist” • Strengths – – – Potential billing and customer intelligence integration Strong call center, technical support, field service J 2 EE — if they can complete the transition Incremental migration to Web architecture More complete provisioning life cycle support • Weaknesses – Telecommunications focus — strategy to support and sell to non-telecom accounts still undetermined – J 2 EE transition risk – Sales functionality – Amdocs services (rather than product) focus 12 © 2001 Giga Information Group, Inc.

Clarify/Amdocs Scorecard Clarify Architecture 7 Vendor Viability Scalability 8 6 Internationalization 5 6 Breadth

Architecture Means Integration, Not Web UI Multichannel Customer Interface Partner, Customer Integration Knowledge/ Content Mgmt CRM Applications Enterprise Integration / Customer Data Mgmt Enterprise Apps (ERP, SCM, legacy) Customer Data 14 Data Warehouse Data © 2001 Giga Information Group, Inc.

Short-Term User Interface Tradeoffs Best for Maintenance / Complexity - Internal users - Complex trans Best for - External users - Simple trans - Mobile sales & service - Poor wireless connectivity - Few, Mobile centralized users Disconnected - Proven perf Laptop, CE, RIM, Palm Client/Server, Java Web Plug-ins Web HTML, Wireless Interactivity 15 © 2001 Giga Information Group, Inc.

CRM Market Share — The Big Get Bigger $4, 000 $3, 500 $3, 000 Rev ($K) Rest of market $2, 500 $2, 000 Remedy/Peregrine People. Soft CRM Oracle CRM SAP CRM $1, 500 $1, 000 $500 Siebel Systems $0 1999 2000 510. 00 18. 25 140. 18 89. 00 141. 00 1, 016. 29 1, 145. 00 156. 61 205. 39 124. 03 168. 00 2, 039. 13 16 2001 1, 025. 40 338. 14 198. 66 186. 89 148. 82 1, 569. 06 Siebel Systems SAP CRM Oracle CRM People. Soft CRM Remedy/Peregrine Rest of market © 2001 Giga Information Group, Inc.

Other Contenders: Life After Suites Well-Known Stable Processes Strong Customer Focus Agile J 2 EE Apps Deep Technology Components ? E-Business • • • SAP • Oracle • Peoplesoft • JD Edwards • Epicor • Siebel CRM E. piphany Pivotal Chordiant Onyx 17 e. CRM • • Kana EGain Firepond Market. Soft Specialty • Knowledge Mgmt • Analytics • Portals • Integration © 2001 Giga Information Group, Inc.

Profile of Target Audience by Vendor Oracle People. Soft SAP Siebel Oracle back office customers People. Soft back office customers, legacy or mixed back office SAP back office customers Single integrated database plays to mid-market Requirements for strong ERM, link to HR, integrated help desk Expertise in SFA, CPG/manufacturing rich “out of box” or other order- centric functionality; operations integrated e-service Oracle-centric architecture & skill set Strong integration, Web architecture SAP-centric architecture & skill set Multiple client options, good int. APIs B 2 B centric Requirement for industry specific solution (20 verticals) Strong e-commerce offering Requirement for relationship analytics 18 Legacy or mixed back office © 2001 Giga Information Group, Inc.

Recommendations • No product will ensure a successful implementation. • Include success criteria (not just functionality checklist) in RFI. • Early adoption of product modules or new versions means risk — ask for references. • Use upgrade to reduce customizations, realign with vendor functionality. • Carefully weigh “best of breed” vs. pre-integration to back office. 19 © 2001 Giga Information Group, Inc.